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Fido, Y&D Square are trying to rock summer Tuesday evenings with free movies at the Harbourfront. The first one starts today.
In Toronto, a number of venues show free movies. During the school year, the Cinema Students Union (1) at University of Toronto (College & St. George, Innis College) show their Free Friday Movies. They have also numerous promotions - screenings of new movies shown before their theatrical release.
Starting today, at the Yonge & Dundas Square, will also be screeening various movies on Tuesdays as well as other events (2). Here's a list:

There is also program guide (PDF) available.
Also starting today, Fido, the mobile GSM phone provider part of the Rogers empire is presenting Free Outdoor Movies at Harbourfront (3) on Tuesdays in July and August. Flash your Fido, and if you're one of the first 60 Fido Customers, they'll give you VIP Treatment (4). Here is what's playing:

Today, July 8 at 9 PM: Juno

Tuesday, July 15 at 9 PM: Rushmore

Tuesday, July 22 at 9 PM: Dick

Tuesday, July 29 at 9 PM: The Virgin Suicides

Tuesday, August 5 at 9 PM: Run Lola Run

Tuesday, August 12 at 9 PM: Audience Choice! You pick between Monsoon Wedding, Touch of Pink, The Wild One or The Motorcycle Diaries -- you've got until August 5 at 5 PM to vote(5).